Doe v. Webgroup Czech Republic

Ninth Circuit Expands Jurisdiction Over Foreign Websites Hosting Exploitative Content Under Rule 4(k)(2)

Plaintiff brought a putative class action against 11 foreign-based defendants, alleging violations of federal and California law for benefiting from and distributing videos depicting her childhood sexual abuse. The district court dismissed the case for lack of personal jurisdiction. On appeal, Plaintiff argued the district court erred in holding that it lacked specific personal jurisdiction under Federal Rule of Civil Procedure 4(k)(2) because Defendants Webgroup Czech Republic, a.s. (WGCR) and NKL Associates, s.r.o. (NKL) purposefully directed their websites at the United States, the claims arose from their forum-related activities, and Defendants failed to show that the exercise of jurisdiction would be unreasonable. Defendants asserted their websites were not expressly aimed at the U.S. and their use of U.S.-based content delivery networks (CDNs) was insufficient to establish jurisdiction. Specific jurisdiction exists under Rule 4(k)(2) when (1) the defendant purposefully directed its activities at the United States, (2) the plaintiff’s claims arise out of or relate to those activities, and (3) the exercise of jurisdiction is reasonable. The Ninth Circuit found Defendants purposefully directed their activities at the U.S. by using CDNs to improve website functionality for U.S. users, earning significant traffic and revenue from the U.S. market. The claims arose directly from these activities, and Defendants failed to present a compelling case that jurisdiction was unreasonable. The Ninth Circuit held the Plaintiff established a prima facie case for personal jurisdiction of WGCR and NKL. REVERSED IN PART, VACATED IN PART and REMANDED.